Dollar edges down against yen amid dropping Asian stocks and oil

On Wednesday, the greenback dipped against its key Japanese counterpart, because investors highly appreciated the perceived safety of the yen. Furthermore, sagging oil and Asian stocks also underpinned the greenback’s weakness.

The evergreen buck dived to ¥108.87 compared to Tuesday’s result of ¥109.21 in New York.

Traders have already witnessed quickly changing risk sentiment since the beginning of this week, when demand for the Japanese currency grew, when key global oil players didn’t manage to agree to an output freeze.

The buying of the Japanese yen was also backed up by the official comments from the US Treasury Secretary, Jack Lew. He told that the yen’s recent appreciation has appeared to be orderly, notwithstanding Japanese government’s description of the yen’s movement as speculator-driven and one-sided.

Nevertheless, the yen weakened after a while, following fresh market sentiment on a recovery in crude prices and stocks. Currently, traders try to shift away from the greenback-yen trade, after confirming the greenback’s strong resistance around ¥109.50 during recent sessions.